New Balance Athletic Shoe Chair & CEO James Davis joined
business leaders from around the nation at a FTC summit on
determining how much of a product has to be made in the U.S. to
be advertised as "Made in the U.S.A.," according to the BOSTON
GLOBE. The FTC cited New Balance in '94 for allegedly
mislabeling product, assembled in the U.S., but using materials
from other nations. The FTC dropped its case last year, but New
Balance spent more than $100,000 in court costs in the process,
according to Davis. The government has argued "all, or virtually
all" of a product has to be domestically made to use the "Made in
the USA" label. Industry leaders argue that in a global economy,
that standard is not realistic as many things are not available
domestically. Shoe companies, among others, advocate a system
that would allow the U.S.A. label if a product is assembled in
the U.S. and made from at least 50% domestic resources. FTC
officials said a new rule could eventually be a series of labels
distinguishing U.S.-produced products from those made with 50% or
75% U.S. materials (Jeremy Wallace, BOSTON GLOBE, 3/28).
